Page 12 - Buying Guide Winter 2019_Neat

Buying A Home? Do You Know the Lingo?

To start you on your path with confidence, we have

compiled a list of some of the most common terms
used when buying a home.

Appraisal – A professional analysis used to estimate the value
of the home. A necessary step in validating the home’s worth to
you & your lender to secure financing.

Closing Costs – The cost to complete the real estate
transaction. Paid at closing, they include: points, taxes, title
insurance, financing costs, items that must be prepaid or
escrowed. Ask your lender for a complete list of closing cost items.

Credit Score – A number ranging from 300-850, that is based
on an analysis of your credit history. Helps lenders determine the
likelihood that you’ll repay future debts.

Down Payment – Down payments are typically 3-20% of the
purchase price of the home. 0% down programs also exist, ask
your lender for more information.

Mortgage Rate – The interest rate you pay to borrow money to
buy your house. The lower the rate, the better.

Pre-Approval Letter – A letter from a lender indicating that
you qualify for a mortgage of a specific amount.

Real Estate Professional – An individual who provides services
in buying & selling homes. Real estate professionals are there to
help you through the confusing paperwork, find your dream home,
negotiate any of the details that come up, and to help you know

exactly what’s going on in the housing market.

The best way to ensure that your home-buying process is
a confident one is to find a real estate pro who will guide

you through every aspect of the transaction with
‘the heart of a teacher’, putting your family’s needs first.

Freddie Mac – My Home Section

12